2. Grant Aid Process (Pre-signing of the Exchange of Notes)

    The grant aid implementation cycle is comprised of the following series of steps: a request for assistance is submitted by a prospective recipient country; the request is screened, a mission to conduct related research is dispatched; interministerial consultations are held; cabinet approval is obtained; negotiations are held with the developing country through the Japanese Embassy or consulate general; an Exchange of Notes (E/N) is signed; the contract for aid project implementation is examined and verified; guidance is provided throughout the implementation process; grant funds are disbursed; and post-evaluation is conducted. Ordinarily, it takes several years from the acceptance of a request for aid through to the confirmation of the outcomes through a post-evaluation of the assistance.
    The implementation of grant aid is overseen by the Ministry of Foreign Affairs of Japan, with cooperation from JICA, and, as appropriate, consultation with other ministries and agencies.

(1) Screening of Requests for Assistance
    Requests for aid from developing countries are usually made through Japanese embassies. In consultation with other ministries and agencies, the Ministry of Foreign Affairs of Japan collects and analyzes relevant data and information to determine whether the request is appropriate to the objectives of the grant aid program. When the request is deemed appropriate, the Japanese Government carries out an on-site study, in accordance with JICA's basic design survey program. The JICA team acquires any additional information that is required, and a provisional estimate of the costs of the assistance project is made.

(2) Interministerial Consultations
    The Ministry of Foreign Affairs holds consultations on proposals to be implemented with the Ministry of Finance and, as appropriate, other interested ministries and agencies.
    These consultations are intended to assist the Government of Japan in determining the amounts of aid to be allocated to different countries and projects. The appropriateness of the aid project is examined from various points of view, using a wealth of collected data.

(3) Cabinet Approval, Negotiations and Signature of the Exchange of Notes
    Once the interministerial consultations are complete, negotiations in detail on the aid package begin with the government of the developing country. When the two governments reach broad agreement on the nature of the aid package, the details are incorporated into the draft Exchange of Notes (E/N), which is the form under which the grant aid commitment is made. Before the E/N can be signed, however, the governments of the two countries must each comply with all the relevant domestic requirements. In Japan's case, this means an official decision brought down by the Cabinet.
    Under normal circumstances, the Ambassador of Japan in the developing country and an authorized official of that country sign the E/N. Signing of the E/N signifies Japan's official commitment to the aid package, and allows the commitment to proceed toward implementation.

Grant Aid Process (Prior to Signing the Exchange of Notes)

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